Based upon information in two articles the following facts have been established. Assistant Treasury Secretary Michael Barr stated the Administration has summoned executives from the largest mortgage companies to Washington in the first week of December to explain the poor performance of Banks to do loan modifications. This is of course not helping families stay in their homes. There seems to be a concern to how rising unemployment which is creating more foreclosures can be addressed.
There is some industry and Government discussion of how some loans are considered for principle reductions but others are not. This of course is creating a situation where clients do not feel they are being treated fairly according to the articles being published in the news papers including the Wall Street Journal.
Also on Monday the Treasury Department laid out additional guidelines for the Foreclosure Alternative Program that established a short sale protocol. This is very important as financial support to the banks and mortgage servicers is tied to this program. The most important change is borrower must be FULLY RELEASED from future liability for the debt according to the guidelines. This could soften the effect of losing your home and possible future legal demands for the debt that is short sold. This could in fact be the very best news to come out of Washington in the recent months for people who are behind on their mortgage.
Everyone at Short Sale Nurse stays as current on changes in policies that can effect our clients. Anyone can tell that our economy is still in a state of change, and we highly agree with the position of the California Association of Realtors, that position is, clients should consult an Attorneys and Tax Professionals before committing to a Short Sale, every situation is different.